Which Are the Most Common Alternative Dispute Resolution Methods?


Legal disputes occur every day. Smaller disagreements can unleash the biggest and hottest legal battles. Therefore, before signing a contract, make sure you understand each clause well. When it comes to contracts associated with huge amounts of money, you can’t trust the word of a good friend.

Legal disagreements can end even the strongest friendships. If you sign a contract with someone you hardly know, it’s better to be careful to not being scammed. Today, resolving a case in a court can take months or even years. Some people prefer accepting scams instead of losing time and money in a court. However, law gives us alternative methods to resolve our disputes.

In order to not necessarily resort to a court, many people usually include an alternative dispute resolution methods (ADR) clause in their contracts. In this way, they save the money they would spend on professional services from a lawyer.

Courts in Chicago attend hundreds of cases daily and some people wait too long to get a solution to their problems. For this reason, many resort to this type of conflict resolution alternatives. The best known modalities are mediation and arbitration.

If you choose ADR as your primary methods, make sure you first understand what each modality is about. When we talk about mediation, it’s about convincing both sides in a dispute to reach an agreement. Usually, who proposes the agreement is a third person who can make an impartial decision that benefits both parties. A Chicago mediation lawyer is usually the best person to reach an agreement. Chicago mediation lawyer that both parties choose must know very well every detail of the contract and the clause that was allegedly breached.

When we talk about arbitration, both parties choose a Chicago arbitration lawyer, for example, and decide to obey whatever the decision that person takes. Both parties must also establish in the contract whether the arbitration of the Chicago arbitration lawyer will be binding or not. If arbitration is binding, parties in dispute are bound to obey. In contrast, if arbitration is nonbinding, the party in disagreement may appeal to a court, allowing a judge to make the final decision.

If judge considers that the arbitration lawyer wasn’t impartial, the arbitration is considered null. It’s very important to be careful before signing a contract where binding arbitration is established as resolution method. In that way, both parties would be giving up their ability to appeal.

When the case is brought to court, it’s convenient that both parties hire their own defense lawyers, especially if the reason for dispute is related to large amounts of money. Some people choose to defend themselves in a court, not having a chance to win when they face a lawyer with years of experience.

Next time you decide to sign a contract, seek advice from a professional lawyer to avoid making mistakes. Also make sure that third parties are present at the time of signing the contract, so they can give testimony in court if necessary.

Remember that binding arbitrations are a double-edged sword. If you aren’t sure of the honesty of the other party, don’t accept this kind of dispute resolution.